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Sub-enclosure 1 to Enclosure in No. 17. The Financial Permanent Secretary to the Treasury to the Under-Secretary of State for the Colonies. Sir, — Treasury Chambers, London, 16th August, 1907. I am directed by the Lords Commissioners of His Majesty's Treasury to acquaint you, for the information of the Earl of Elgin, that the Pacific Cable Board's account of the expenses of the cable for the year ended 31st March last has now been audited. A copy of the auditor's report is enclosed herewith, from which it will be seen that the deficit on the working of the cable for the year in question amounts to £54,923 12s. 2d., and the sums, therefore, recoverable from the colonial Governments are as follows :— £ s. d. Australia (six-eighteenths) ... ... ... ... 18,307 17 5 Canada (five-eighteenths) ... ... ... ... ... 15,256 11 2 New Zealand (two-eighteenths) ... ... ... 6,102 12 5 39,667 1 0 I am accordingly to request that you will move the Secretary of State to communicate with the colonial Governments concerned in order that these amounts may be paid as soon as practicable to the credit of the account of the vote for telegraph subsidies and Pacific cable. A copy of the printed account [Enclosure in No. 12] as presented to Parliament is enclosed herewith. " I nave . &c -> The Under-Secretary of State, Colonial Office, S.W. E. W. Hamilton.

Sub-enclosure 2 to Enclosure in No. 17. The Accountant to the Treasury, London, to the Secretary to the Treasury, London. g IR Treasury Chambers, London, 2nd July, 1907. I have the honour to report that I have audited the accounts of the Pacific Cable Board for the year ended 31st March, 1907, in accordance with the instructions conveyed in their Lordships' minute of the 17th April, 1902, and have found them correct. The annual expenses of the cable, as described in section 3, (2), of " The Pacific Cable Act, 1901," so far as they were not met out of the receipts arising in connection with the cable, amounted in the year ended 31st March, 1907, to £54,923 12s. 2d., and a sum of £39,667 Is., representing thirteen-eighteenths of the net expenditure, is therefore recoverable from the colonial Governments, viz. :— £ s. d. Australia (six-eighteenths) ... ... ••■ •■■ 18,307 17 5 Canada (five-eighteenths) ... ... ... ... 15,256 11 2 New Zealand (two-eighteenths) ... .-. • 6>102 12 5 39,667 1 0 I beg to submit that the accompanying account [Enclosure in No. 12], which has been duly certified, be presented to Parliament in compliance with section 7 of " The Pacific Cable Act, igQi " I have, &c, The Secretary to the Treasury. G. H. Hunt.

No. 18. The General Manager, Pacific Cable Board, London, to the Secretary, General Post Office, Wellington. g IR) The Pacific Cable Board, Queen Anne's Chambers, S.W., 4th October, 1907. I have the honour to acknowledge the receipt of your letter dated the 21st August, forwarding copies of correspondence between the Secretary to the Auckland Harbour Board and the Public Works Department, Wellington, intimating that the Harbour Board will lay down, free of cost, water-pipes, meters, hydrants, <fee, on the wharf erected for the use of H.M.C.S. <T lris," on the distinct understanding that the rates and charges for the supplying of water to shipping will be levied for all water that may be taken from this wharf. The Pacific Cable Board will be obliged if you will convey to the Minister for Public Works, and to the Harbour Board, their thanks for this concession. The commander of H.M.C.S." Iris " will be duly advised. I have, rfeo., C. H. Reynolds, The Secretary, General Post Office, Wellington. General Manager. [P.C Stns. 07/21.]